Because of recent school property losses in the state, the Russellville School Board looked more carefully at the district's coverage when renewing its insurance Tuesday night.

Nathan Barber, district business manager, recommended a $5 million increase in insurance coverage because of state regulations requiring school districts to build, or rebuild, according to certain specifications.

And because most standard insurance policies only replace losses with "like kind and quality to that which was destroyed," Barber told the board the district may be underinsured.

The increase in coverage is estimated to cost the district an extra $7,000 per year added to the existing premium of $110,000 through Hoffman-Henry Insurance Co. of Pine Bluff. The district is in the second year of a three-year contract with the company.

"There could be several million dollars difference in what it would cost to rebuild and what we have coverage for," Barber said. "And I think everybody agrees we need to be fully insured ... We need to be sure all $95,511,109 worth of buildings and contents in the district are covered. This is a huge investment the community has made, and it's my job to see that we're covered."

The school board voted to increase the coverage area of "demolition and increased cost of construction" from $500,000 to $4 million, and increase the area of "extra expense" from $500,000 to $2 million.

The "increased cost of construction" coverage would include specifications such as sprinkler systems, security systems, classroom size, etc., mandated by the state. The "extra expense" coverage would pay for any relocating in the district while new construction was underway, according to Barber.

Board Member Leon Anderson commended Barber for looking into the school's insurance and finding its flaws.